April 25 (Reuters) - L3Harris ( LHX ) lifted the

upper-end of its annual adjusted profit target on Thursday,

betting on sustained weapons demand and robust defense spending

amid escalating global security concerns.

U.S. defense companies are experiencing a surge in contracts

as the Russia-Ukraine war, the Middle East crisis and the

specter of Chinese aggression are driving demand, but growth is

still hindered by pandemic-related labor and supply-chain

disruptions.

Following the Aerojet buyout in 2023, L3Harris ( LHX ) suspended its

merger and acquisition activity for the "foreseeable future" in

efforts to strengthen its balance sheet.

L3Harris ( LHX ) also launched a review of its operational

performance, cost structure and portfolio composition, which is

expected to be completed by this year.

The company now expects the upper-end of its annual adjusted

profit to be $13.05 per share, up from its previous guide of

$12.80 per share.

Earlier this week, Reuters reported that L3Harris ( LHX ) would cut

5% of its workforce this year as part of a cost saving measure,

citing an email to employees.

Florida-based L3Harris ( LHX ) posted an adjusted profit of $3.06

per share for the quarter ended March 31, compared with $2.86

per share a year earlier.

Its overall sales in the first-quarter rose 17% to $5.2

billion.